New Labor Rule Expands the Number of Workers Eligible for Overtime Pay

Last Updated: Jan 1, 2020

Overtime-binderPractices and health care organizations should be aware of a new U.S. Department of Labor (DOL) rule governing overtime pay for workers. DOL estimates that this change could make an additional 1.3 million workers nationwide eligible for overtime pay.

On Jan. 1, 2020, the standard salary level needed to exempt employees from minimum wage and overtime pay requirements was increased from the previous level of $455 per week to $684 per week.

The new rate is equivalent to $35,568 per year for a full-year worker. Employees earning less than the threshold must be compensated for overtime work.

Other key provisions in the rule include:

  • Raising the total annual compensation requirement for “highly compensated employees” from the currently enforced level of $100,000 per year to $107,432 per year
  • Allowing employers to use nondiscretionary bonuses and incentive payments (including commissions) paid at least annually to satisfy up to 10 percent of the standard salary level

The DOL offers more information on the overtime final rule on its overtime update webpage, including:

Pennsylvania Medical Society (PAMED) members with questions can also contact our Knowledge Center at 855-726-3348 or KnowledgeCenter@pamedsoc.org

Leave a comment

ng5136-PA-PAMedSociety-DigitalAd-Brand-970x90